S&P 500 Breaks Trend Support, Softens Technical Outlook

SP 500 Technical Highlights

  • SPX broke late-June trend-line yesterday
  • Shifts focus towards big support from before
  • Continue to watch the Nasdaq 100, FAANG

For the intermediate-term fundamental and technical outlook for SP 500, check out the just-released Q4 Global Equities Forecast.

SP 500 broke late-June trend-line yesterday

Yesterday, the SP broke trend-line support rising up from the late-June low, but managed to trim losses to avoid its first down 1% day in over 70 days. We are currently in the third longest streak without a 1% loss since 2006. One of these days…

The late-day rebound made the break of trend support a little less meaningful, but if the market can’t quickly get its footing then look for a test of the prior swing lows near the high from January and April trend-line, situated in the vicinity of 2872/60.

This area marks an important spot to look for the market to hold or fold. A hold will keep things intact, while a break will bring into play again the all-important February 2016 trend-line/200-day MA combination. Things in the very near-term look

Article source: https://www.dailyfx.com/forex/technical/home/analysis/spx500/2018/10/05/SP-500-Breaks-Trend-Support-Softens-Technical-Outlook-PRtech.html